21 unchanged sentences
Simulation analysis involves projecting a future balance sheet structure and interest income and expense under the various rate scenarios.
−Removed: Internal policy regarding internal rate risk simulations currently specifies that for instantaneous parallel shifts of the yield curve, estimated net interest income at risk for the subsequent one-year period should not decline by more than:
+Added: Internal policy regarding internal rate risk simulations currently specifies that for instantaneous parallel shifts of the yield curve, estimated net interest income at risk for the subsequent one-year period
+Added: should not decline by more than:
6% for a 100 basis point shift;
41 unchanged sentences
300 (14.00) 4.50
−Removed: While ALCO reviews and updates simulation assumptions and also periodically back-tests the simulation results to ensure that the assumptions are reasonable and current, income simulation may not always prove to be an accurate indicator of interest rate risk or future net interest margin.
+Added: While ALCO reviews and updates simulation assumptions and also periodically back-tests the simulation results to ensure that the assumptions are reasonable and current, income simulation may not always prove to be an accurate indicator of interest
+Added: rate risk or future net interest margin.
Over time, the repricing, maturity and prepayment characteristics of financial instruments and the composition of our balance sheet may change to a different degree than estimated.
1 unchanged sentence
ALCO has modeled increased costs of deposits in the rising rate simulation scenarios presented above.
−Removed: In the minus 100 scenario above, the change in EVE of (21.4)% is outside of policy parameters;
−Removed: however, the Bank continues to be well-capitalized.
−Removed: The result of this simulation was discussed with the ALCO and the Company has decided to not take any further action at this time as this scenario is deemed unlikely in the current interest rate environment.
−Removed: It should be noted that the static balance sheet assumption does not necessarily reflect our expectation for future balance sheet growth, which is a function of the business environment and customer behavior.
+Added: It should be noted that the static balance sheet assumption does not necessarily reflect our expectation for future balance sheet growth, which is a function of the business environment and client behavior.
Another significant simulation assumption is the sensitivity of core deposits to fluctuations in interest rates.
11 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.